DJIA or Dow

The Dow Jones Industrial Average (DJIA), or simply the Dow, is a stock market index that measures the stock performance of 30 large companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. The index is the second oldest stock market index in the United States, after the Dow Jones Transportation Average, which was also created by Charles Dow. The DJIA is one of the most widely followed stock market indices in the world and is often used as a benchmark for the performance of the U.S. stock market.

History of the Dow

The Dow was created by Charles Dow, co-founder of Dow Jones & Company, and editor of the Wall Street Journal, in 1896. The index was created to measure the performance of the industrial sector of the U.S. economy. The original index consisted of 12 industrial stocks, including General Electric, U.S. Steel, and American Tobacco. Over the years, the index has grown to include 30 stocks, including Apple, Microsoft, and Walmart.

The Dow is a price-weighted index, meaning that stocks with higher prices have a greater impact on the index than stocks with lower prices. The index is calculated by taking the sum of the prices of the 30 stocks and dividing it by a divisor. The divisor is adjusted periodically to account for stock splits, spin-offs, and other corporate actions.

Comparisons

Summary

The Dow Jones Industrial Average (DJIA) is a stock market index that measures the stock performance of 30 large companies listed on the New York Stock Exchange (NYSE) and the NASDAQ. The index was created by Charles Dow in 1896 and is one of the most widely followed stock market indices in the world. The index is a price-weighted index, meaning that stocks with higher prices have a greater impact on the index than stocks with lower prices. For more information about the DJIA, visit the websites of the New York Stock Exchange, the NASDAQ, or Dow Jones & Company.

See Also

• S&P 500
• NASDAQ Composite
• Dow Jones Transportation Average
• NYSE Composite
• Russell 2000
• Wilshire 5000
• FTSE 100
• Nikkei 225
• Hang Seng Index
• Shanghai Composite

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